29-1 (Purchases). Transactions January 2 Todd Company adquired 35%21 for $250,000. On January 2,2019 , Todd Company acquired 35% of the outstanding stock of McGuire Company for $250,000. For the year ending, December 31, McGuire earned income of $100,000 and paid dividends of $20,000. Prepare the entries for Todd company for the purchase of the stock. Debit Cash $250,000; Credit Investment $250,000 Debit Investment $350,000; Credit Cash $350,000 Debit Investment $250,000; Credit Cash $250,000